Simmons Enters Prepack Ch. 11 With Serta Owners

Law360, New York (November 16, 2009, 1:17 PM EST) -- With lenders' blessing, U.S. mattress manufacturer Simmons Bedding Co. entered Chapter 11 bankruptcy Monday, aiming for a speedy turnaround under a plan that would halve its debt and, for $760 million, transfer ownership to equity investors who also control the maker of rival mattress line Serta.

Atlanta-based Simmons, parent companies Simmons Co. and Bedding Holdco Inc. and domestic subsidiaries filed their prepackaged petition in the U.S. Bankruptcy Court for the District of Delaware, listing combined assets worth $900 million and a debt load of $1 billion....